A company that seeks to pay a fixed dollar amount in dividends each period is following a

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A company that seeks to pay a fixed dollar amount in dividends each period is following a constant nominal payment policy. This means that the company pledges to pay a fixed dividend amount to its shareholders regardless of its earnings, financial condition or dividends paid in the past. This policy can provide a sense of financial stability to the shareholders and is commonly used by mature companies that do not expect significant changes in their future performance.

A Company That Seeks to Pay a Fixed Dollar Amount